NAR: Pending Home Sales Slip 2.6% in June

Pending home sales continued downward in June, according to the National Association of Realtors (NAR), with near-term sales expected to be notably lower than the spring.
After experiencing a staggering drop in May after the expiration of the tax credit offer for homebuyer, NAR's pending home sales index decreased to a reading of 75.7 in June, down 2.6% from May. An index of 100 is equal to the average level of contract activity during 2001.
The index is a forward-looking indicator of future existing home sales based on signed sales contracts. The index is 18.6% elow its June 2009 level.
NAR chief economist Lawrence Yun said lower home sales are expected in the short term with mortgage rates staying near historically low amounts.
“Over the short term, inventory will look high relative to home sales," Yun said. "However, since home prices have come down to fundamentally justifiable levels, there isn’t likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices.”
Yun believes home sales could pick up later in the year if employment opportunities increase, but says he only predicts modest growth in the job market.
“We really need to see stronger job creation to have a meaningful recovery in the housing markets,” he added.
Regionally, only pending sales in the South rose during June, up 3.7%; however, home sales in this region are below June 2009 by 13.3%. Pending sales in the Northeast dropped 12.2%, 25.4% lower than June 2009. In the West, pending sales slipped 0.2% and are 14.2% below a year ago. The Midwest experienced a 9.5% decrease to 64.1% in pending sales, putting the index 27.8% lower than its level in June 2009.
Write toChristine Ricciardi.

This month inHousingWire magazine

Eight years after we began recognizing women for their influential work in the expanding housing and mortgage finance ecosystem, a traditionally male-dominated field, our Women of Influence list is bigger and better than ever! This year, we honor 85 women who are making lasting achievements in each sector of the housing economy. Read on to learn more about these accomplished women and the strides they are making in their industry segments.

Feature

The financial world at large is experimenting with changing its workforce culture in ways not fathomable 10 years ago. For example, in 2011, the dress code for female workers at UBS came to light with unflattering results. In it, the Swiss bank instructed female employees on not just how to dress and how to smell, but also preached the importance for ladies to apply lotion after taking showers. Fast forward to today and fellow Swiss bank, Credit Suisse has now created an official role to boost equal opportunities and create a fair treatment environment. Has the American mortgage industry made similar progress?

Commentary

The conversation around student loan debt and its economic impact on Millennials, those born from 1980 to 1998, has some questioning whether the future of the American Dream is in jeopardy. The nation’s student loan debt has soared to $1.4 trillion, surpassing credit cards in becoming the largest source of personal debt outside a mortgage.